Introduction to Marketing, chapter 2 the global marketing environment Rob Simons | [email protected] | @rmsimons
Introduction to Marketing, chapter 2
the global marketing environmentRob Simons | [email protected] | @rmsimons
@rmsimons
IntroductionMy background:
• ITMC Alumnus
• Online Marketing Manager – wiki-travel guide Earth.org
• NHTV: mostly (online) marketing courses
• MSc in Marketing at VU (class of 2012)
• Born in 1980
what’s on the menu:
1. what is meant by the term ‘marketing environment’
2. the distinction between microenvironment and the macroenvironment
3. the macroenvironment4. the microenvironment5. how companies respond to environmental
change
→ chapter 5: Market Segmentation, Targeting, and Positioning
1. what is meant by ‘the marketing environment’
The marketing environment consists of the actors and forces which affect a company’s capability to operate effectively in providing products and services to is chosen markets.
It can be classified into:• the macroenvironment• the microenvironment
2. the distinction between microenvironment and the macroenvironment
Macroenvironmentconsists of a number of broader forces that affect not only the company, but also the other actors in the microenvironment.
(these are largely uncontrollable)
Macroenvironmentconsists of a number of broader forces that affect not only the company, but also the other actors in the microenvironment.
(these are largely uncontrollable)
Microenvironmentactors in the firm’s immediate environment or business system that affect its capabilities to operate effectively in its chosen markets
(to a certain extend, the company has control over these forces)
Microenvironmentactors in the firm’s immediate environment or business system that affect its capabilities to operate effectively in its chosen markets
(to a certain extend, the company has control over these forces)
“It is useless to tell a river to stop running –the best thing is to learn how to swim in the direction in which it is flowing”- Anonymous
3. the macroenvironment
follow me!
follow me!
• economic growth and unemployment• interest and exchange rates• taxation and inflation
economic forcesimpact on how well-off consumer feel, and affect their future spending on goods and
services.
• Demographic forces
• Cultural forces• Corporate social
responsibility and marketing ethics
• The consumer movement
social forceshave become very important as the impact of business on society receives more
attention
social forces (demographics: population growth
predictions)
social forces(corporate social responsibility and marketing
ethics)
• The European Union• Pro-competitive legislation• Consumer legislation • Codes of practice
political and legal forcesmay be enacted at a national or a European level and are designed to protect
consumers and ensure fair competition.
• Climate change• Pollution• Recyclable and non-
wasteful packaging• Use of environmentally
friendly ingredients• Animal testing of new
products• Use of environmentally
friendly ingredients
physical (ecological) forceschanges in the physical environment are becoming increasingly significant for both
business and consumers
InternetInternet
ComputersComputers
RoboticsRobotics
BodyScanners
BodyScanners
DVDDVD
Mobile PhonesMobile Phones
Technological ForcesTechnological Forces
technological forcestechnology is changing rapidly and needs to be constantly monitored
macroenvironmental impacts – let’s try it!
for each of the following products, assess which of the political/legal, economic, physical, social and technological
environments has had the most impact in recent years.
4. the microenvironment
• Customers• Distributors• Suppliers• Competitors
the microenvironment
REMEMBER?
actors in the firm’s immediate environment or business system that affect its capabilities to operate effectively in its chosen markets
(to a certain extend, the company has control over these forces)
REMEMBER?
actors in the firm’s immediate environment or business system that affect its capabilities to operate effectively in its chosen markets
(to a certain extend, the company has control over these forces)
environmental scanningpractice of monitoring and analysing a company’s marketing environment
Two key decisions:
• what to scan
• how to organize the activity
Two key decisions:
• what to scan
• how to organize the activity
Retrenchment
Gradual strategic repositioning
Radical strategic repositioning
Environmental change
Ignorance
Delay
Barriers to
change
responses to environmental change
Introduction to Marketing, chapter 5
market segmentation, targeting, and positioning
Rob Simons | [email protected] | @rmsimons
what’s next on the menu:
1. how are segmenting, targeting and positioning connected
2. market segmentation3. target marketing4. positioning
Segmenting – the division of a diverse market into a number of smaller submarkets that have common features
1. how are segmenting, targeting and positioning connected
Targeting – refers to the choice of specific segments to servePositioning – designing the product so that it occupies a meaningful and distinct possition in the target customer’s mind
• Involves the division of a diverse market into a number of smaller submarkets that have common features.
• The objective is to identify groups of potential customers with similar requirements.
• Market segmentation provides a commercially viable method of serving customer needs.
• Segmentation is at the heart of strategic marketing.
2. market segmentationnot all customers have the same needs
• Better matching of customer needs
• Enhanced profitability
• Improved customer retention
• More effective targeting of communications
• Opportunities for segment dominance
the benefits of market segmentation
Toyota Yaris
Unashamedly
targets female
buyers
Example: Toyota
Consumer segmentation
Behavioural
Benefits sought
Purchase occasion
Purchase behaviour
Usage
Perceptions and beliefs
Lifestyle
Personality
Demographic
Socio-economic
Geographic
Psychographic Profile
segmenting consumer markets
consumer segmentation methods
Healthy living is a growing market:
brands like Lo Salt aim to capitalise on the trends towards healthier lifestyles.
Example: Lo Salt
Organisational segmentation
Purchasing
organisation
Organisational size
Industry ChoiceCriteria
Geographiclocation
segmenting organisational markets
3. target marketing
4 strategies: • undifferentiated marketing• differentiated marketing• focused marketing• customised marketing
4 strategies: • undifferentiated marketing• differentiated marketing• focused marketing• customised marketing
Marketing mix Whole market
target marketing strategies
undifferentiated marketing
PostOffic
e
• Price• Promotion• Product• Distribution
Everybody
ORGANISATION MARKETING MIX TARGET MARKET
example:example:
Marketing mix 1 Segment 1
Segment 2
Segment 3
Marketing mix 2
Marketing mix 3
target marketing strategies
differentiated marketing
example:example:
Miss Selfridges
18- 24 age group
Dorothy Perkins20s & 30s
EvansSize 16+
Arcadia Group
Marketing Mix 1
Marketing Mix 2
Marketing Mix 3
Segment 1
Segment 2
Segment 3
Marketing mix
target marketing strategies
focussed marketing
example:example:
•Product•Price•Promotion•Distribution
Bang & OlufsenMusic
systems
Upmarket consumers
Unserved
Unserved
ORGANISATION MARKETINGMIX
Price conscious consumers
Value seekers
Marketing mix 1 Customer 1
Customer 2
Customer 3
Marketing mix 2
Marketing mix 3
target marketing strategies
customised marketing
example:example:
MarketingMix 1
MarketingMix 2
MarketingMix 4
Nissan
Birdseye
Mercedes
IndustrialElectronicSystems Supplier
INDIVIDUAL MIXESORGANISATION INDIVIDUAL CUSTOMERS
4. positioning
effective positioning is the act of linking products and services to the solutions
that customers seek
effective positioning is the act of linking products and services to the solutions
that customers seek
‘people don’t want to buy a mousetrap, they want fewer mice’
Clarity Consistency
Credibility
Successful positioning
Competitiveness
keys to successful positioning
Virtually identicaldrinks that are positioned very
differently
Example: Diet Coke and Coke Zero
A
B
C
D
X
G
E
F
High price
Low price
Narrow product range
Wide product range
a perceptual map of supermarkets
repositioning strategies
Image repositioning
Product repositioning
Intangible repositioning
Tangible repositioning
Same Different
Same
Different
Target market
Product
questions?
Rob Simons | [email protected] | @rmsimons
Photo references
Strange juice: http://www.flickr.com/photos/qilin/368046417/sizes/o/in/photostream/
Green Sea Turtle: http://opencage.info/pics.e/large_10895.asp
Microenvironment Ostrich: http://www.studio-kg.com/ostrich/
the dude is bored: http://awesomegifs.com/2011/05/the-dude-is-bored/
Mobile phone: http://www.flickr.com/photos/whiteafrican/2736565604/sizes/m/in/photostream
Cigarettes: http://www.flickr.com/photos/moneyblognewz/5328110795/sizes/m/in/photostream/
Cosmetics: http://www.flickr.com/photos/idhren/4660373946/sizes/m/in/photostream/
Soft drinks: http://www.flickr.com/photos/happy_serendipity/5542733405/sizes/m/in/photostream/
For sale: http://www.flickr.com/photos/sercasey/248457195/sizes/m/in/photostream/
Coins: http://www.flickr.com/photos/andresrueda/3477537829/sizes/m/in/photostream/
polution: http://www.flickr.com/photos/21787159@N00/352250460